Bitcoin is open source, meaning it belongs to no one and belongs to everyone at the same time.
the market law of supply and demand, and to be more specific how many trades are made through bitcoin, how many people buy bitcoin, how many people sell it and that's what makes the value of bitcoin go up and down.
and people create value and bitcoin belief that it will be a big technological breakthrough in the future, not bitcoin but blockchain technology behind it.
Topic: where does the price of bitcoin come from? - page 2. (Read 499 times)
who is the person who says that today it should be worth 40k and tomorrow 42k? isn't it something decentralized that nobody controls? who agrees on the price to be like this?
I don't know at the first place who told you that the price of Bitcoin will hit $40k when we all know that the price of Bitcoin is mostly based on prediction. When need to predict what the price of Bitcoin will be from few months to years coming. We know that the price of Bitcoin is based on liquidity created for the contineous flow of Bitcoin. who is the person who says that today it should be worth 40k and tomorrow 42k? isn't it something decentralized that nobody controls? who agrees on the price to be like this?
And who told you that it works like that? No asset that is freely traded works like that, there is a process that is called price discovery that is what determines the price of an asset.Basically it is based on perception, a transaction between a buyer and a seller does not happen unless the buyer and the seller both think they are getting a fair price for an asset, this process happens over and over again all over the world and this helps determine the price of an asset at any given time, however due to different circumstances that perception changes which changes the demand and the supply and it is what causes the price to go up or down, as the perception of what the buyers and sellers think it is a fair price is always changing.
The value of bitcoin is determined mainly by market sentiment. The comparative prices of different crypto currencies and market supply and demand.
I think you should also understand the concept of he value and valuation. Value is the price, at which you can currently sell your bitcoin, but valuation is the value that market ascribe to the bitcoin based on its market evaluations
I think you should also understand the concept of he value and valuation. Value is the price, at which you can currently sell your bitcoin, but valuation is the value that market ascribe to the bitcoin based on its market evaluations
I see the price of bitcoin is in the hands of the big whale if the big whale lost faith in bitcoin and they sold all the bitcoins in their wallet would the bitcoin price be that expensive now? Of course the answer is that bitcoin will no longer be worth it.
who is the person who says that today it should be worth 40k and tomorrow 42k? isn't it something decentralized that nobody controls? who agrees on the price to be like this?
I feel every investor is a key player in determining BTC price which is just a clear picture of demand and supply. With the question you have put across, it makes it look as if there is someone up there responsible for determining whether this week it should be $40k or $42k next week. 
the price of bitcoin comes from its many supply and demand transactions and it has become a law in the world economy even.
so the more people interest in bitcoin then the holder has the right to determine their best price
so the more people interest in bitcoin then the holder has the right to determine their best price
I can understand how newbie the question is because I was once wondering too when I have no idea about how the market works. There is no one up there on the clouds with a long white beard deciding how much the price will be.
The orderbook type exchange is a good visual way to really make you understand it for it displays buy and sell orders of the traders. The price is normally what BTC sellers are willing to sell and if a buyer agrees to pick the order, then its the market price.
The orderbook type exchange is a good visual way to really make you understand it for it displays buy and sell orders of the traders. The price is normally what BTC sellers are willing to sell and if a buyer agrees to pick the order, then its the market price.
• Mr. Bob puts 1BTC up for sale at the value of $29,700 on binance, that's the price he wants to sell at,
• Mrs. Jane takes up his offer and buys his bitcoins in exchange for $29,700,
• Once the sale is confirmed, that would be the displayed Bitcoin price on binance, until the next trade that is, this is why the value is always changing.
Simple and precise illustration that says it all!• Mrs. Jane takes up his offer and buys his bitcoins in exchange for $29,700,
• Once the sale is confirmed, that would be the displayed Bitcoin price on binance, until the next trade that is, this is why the value is always changing.
In a single phrase, we can say, the price of bitcoin is determined by you and I using our buy and sell order. Not the exchange or any other governing body as there is non in the case of bitcoin but yourself and myself. Most of the crypto transactions we do is with or without an escrow of which, exchanges often serve in that capacity but once we are able to agree at a price, we can transact with that price.
Having someone or a body to decide its price means centralisation to it and bitcoin isn't about centralisation. Its the most decentralized of all cryptocurrencies.
It's almost the same as most commodities out there, where scarcity and surplus gets to play a role to its value with each buyer and seller getting to value it as they see fit due to prevailing circumstances.
who is the person who says that today it should be worth 40k and tomorrow 42k? isn't it something decentralized that nobody controls? who agrees on the price to be like this?
IMO, I believe everyone can speculate and predict the future Bitcoin price, But nobody can control it. Because the price was purely based on the supply and demand, meaning the traders are dictating the price on a daily basis, and the buy and sell movements can affect the daily price volatility of Bitcoin and other cryptocurrencies in the market. And if the market has a bearish sentiment which results in fewer bitcoin buyers we can expect the Bitcoin price to go down, but if the market is Bullish in sentiment meaning there are a lot of potential buyers we can expect that the Bitcoin price will go up because the demand was there.
I think there is no harm in predicting the price of bitcoin, and no one will be able to prevent you from this, because it is only a prediction and not a decision to set the price of bitcoin, which decides the price of bitcoin is the market itself. After all, we all know that Bitcoin is always decentralized, of course, the price according to the buyer's request can be concluded that the price of Bitcoin depends on the supply and demand that occurs in the markets, of course.
Actually you have answered your own question, namely you know that no one can control the Bitcoin.
Actually you have answered your own question, namely you know that no one can control the Bitcoin.
Bitcoin is a decentralised means of exchange and it’s finite. The price of bitcoin or worth is determined by its supply and demand, number of competitors. Also it is affected by regulations and media coverages amongst others. So no one knows or can tell the price the bitcoin will be in a particular time but can only predict it to be a particular amount looking at the way the market is operating at that point in time.
The statement about decentralization is very true, no one will be able to control the price of bitcoin. But for people who say tomorrow the price of bitcoin will hit $40k, $100k or some other price it's just a prediction and the predictions made won't actually happen, maybe just close. It all depends on Fundamentals and depends on supply and demand.
Whales also can not fully control, but wahles can do a lot of manipulation to influence the price.
source: https://dotnettutorials.net/lesson/supply-and-demand-trading/
Whales also can not fully control, but wahles can do a lot of manipulation to influence the price.
source: https://dotnettutorials.net/lesson/supply-and-demand-trading/
Therefore, don't believe too much in a prediction because everything is just words that can be right or wrong.
Let's go back to our own beliefs, even though many whales manipulate bitcoin prices, but bitcoin prices for now still can't rise and we can only wait and wait.
The statement about decentralization is very true, no one will be able to control the price of bitcoin. But for people who say tomorrow the price of bitcoin will hit $40k, $100k or some other price it's just a prediction and the predictions made won't actually happen, maybe just close. It all depends on Fundamentals and depends on supply and demand.
Whales also can not fully control, but wahles can do a lot of manipulation to influence the price.
source: https://dotnettutorials.net/lesson/supply-and-demand-trading/
Whales also can not fully control, but wahles can do a lot of manipulation to influence the price.
source: https://dotnettutorials.net/lesson/supply-and-demand-trading/
there are dozens of exchanges. with millions of people. they compete with each other.
thank you very much for the answers, I had an intuition. The truth sometimes frustrates me to be almost since 2012 in forums learning about the Internet and never having bought bitcoins, because I really appreciate the philosophy of this currency and many Internet communities and this forum that are always willing to help. Many people don't care about that and just want to get rich with the currency and then exchange it for fiat money. I think in the future bitcoin is going to be used to pay for very good and kind things that people who have fiat money will not be able to pay for, in that sense I do get excited about having bitcoin coins. It has been clear to me what must happen for the price to change and I really liked the answers, also if someone wants to donate something I have created a new wallet bc1q0ew6jtj4swmf2ylf9yqeq7wp7xm3j9w3tqwvg5 since in 2018 I think, I received a payment of 0.0002 but my cell phone was damaged and I can not recover my key, I will take care of it a lot.
Of course, bitcoin is decentralized and the price is not determined or approved by anyone, it depends entirely on supply and demand, this law is not only on bitcoin but on everything, meaning if the demand for the purchase of a commodity increases, this will lead to a rise in its price, there is a famous incident in history known With the tulip boom or the tulip madness, people started to buy tulips in a frenzy, which led to an insane increase in demand for this flower and a fabulously high price, this is how things work.
The demand increases, the price goes up, in many cases by people who want something different from the unfair and unequal fiat money, so is it not possible that the demand goes up and the price goes down ? so that all those who do not have the resources to acquire the potential can acquire it in an easier way ?
You got tge wrong idea friend, people said that bitcoin will be 100k or we 10k tomorrow is just a person who predict not control or decide the price, people are free to say whatever they want not just about bitcoin but every stuff in the life, bitcoin is decentralised and it will be desensitized forever
Of course, bitcoin is decentralized and the price is not determined or approved by anyone, it depends entirely on supply and demand, this law is not only on bitcoin but on everything, meaning if the demand for the purchase of a commodity increases, this will lead to a rise in its price, there is a famous incident in history known With the tulip boom or the tulip madness, people started to buy tulips in a frenzy, which led to an insane increase in demand for this flower and a fabulously high price, this is how things work.
Bitcoin is a speculative asset and that's why anyone can give the price the way they look at it. True, no one controls the price and that's why if someone says that it's going to be at that price then that's his opinion and there's a probable analysis as to why it's going to be at that price by now.
Everything on the market relies on the supply and demand and that plays a big part to the motion of prices.
Everything on the market relies on the supply and demand and that plays a big part to the motion of prices.
Would you ask who is the person that make the price of your local commodity increase or decrease, because no matter where we are from we all have that commodity that either increases or decreases, this is very normal and most times it has to do with, supply chain and demand, when the former is higher than the later the price decreases and if the later is higher than the former then the price increases, this is naturally how the system works although some people can control these chain but they have to be whales to do so.
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